National General Holdings Corp. acquired two U.S. regional property/casualty insurers, allowing it to expand into multiple states.

The first acquisition involves Century-National Insurance Company, a California-based property/casualty underwriter. National General, a New York-based specialty personal lines insurance holding company, said it will pay approximately $315 million for Century-National based on Sept. 30, 2015 results. A final price will be based on financials at closing, equating in part to a $50 million premium to tangible book value and a $140 million upfront cash payment.

National General plans to pay the remaining balance over two years. Assuming closing and regulatory approvals can be met, the deal will close in the 2016 second-quarter.

Century-National, launched in 1956, employs 250 people and has a financial strength rating of “A” from A.M. Best. The insurer wrote $180 million of direct written premium in 2014 and about $150 million through the first nine months of 2015. While Century-National does most of its business in California, it also operates in Nevada, Arizona and Illinois. Execs focus their underwriting on homeowners, personal auto and commercial auto liability, as well as fire, allied lines, earthquake and commercial multi-peril coverage.

As well, Century National uses multiple channels for distribution, including 800 independent agents and brokers, MGAs, lender-affiliated agencies and direct response marketing.

National General said it will also buy Standard Mutual Insurance Company, an Illinois-based property/casualty underwriter. Neither side is disclosing financial details, though the deal will be made after Standard Mutual is converted from a mutual to a stock company.

Plans call for closing the acquisition in the 2016 second quarter, pending regulatory approvals and other closing conditions.

National General Chairman and CEO Michael Karfunkel said that Standard Mutual will get it into Illinois and Indiana, and also allow expansion of its “growing personal lines franchise.”

Karfunkel added in prepared remarks that the deal is National General’s first demutualization, and should be immediately accretive to earnings.

Standard Mutual has a “B+” financial strength rating from A.M. Best. It primarily underwrites passenger automobile and homeowners lines in Illinois and Indiana, wrote about $49 million of direct written premium in 2014 and $37 million in the first nine months of 2015.

Standard Mutual distributes its products through 250 independent agents.

Source: National General Holdings Corp.